Even though the APR % for WAX Defi has been amazing (read more about WAX Defi rewards here) people still seem hesitant to learn how to participate as it seems complicated.
So we've created this simple overview of what is involved to try and help people see how easy it is to start earning these amazing WAX Defi returns... if you'd like a more detailed step by step process here is a more detailed guide from WAX.
Step 1: You Need Both WAXE And ETH
- You can only add liquidity in the next step with an equal value of WAXE and ETH so if you have less value in one token that is all you'll be able to add of the other.
- Important: You will need to have the WAXE and ETH (both ERC-20 tokens) in the same ETH account that you can access with MetaMask. You will also need enough spare ETH in that wallet to cover the transaction fees (gas).
- Here is a guide from one37pm.com on how to set up your MetaMask wallet. As mentioned you will need to have access to your tokens in MetaMask in order to use them in the WAX Cloud Wallet.
- To get WAXE you can swap (burn) your WAXP to WAXE at a ratio of 1000 WAXP to 1 WAXE in the WAX Cloud Wallet https://wallet.wax.io/defi you will need to have set up your MetaMask wallet already and if it isn't connected already click "Login to MetaMask", this process will swap your WAXP EOSIO tokens to WAXE ERC-20 tokens, to start the process click "Burn WAXP to WAXE" and follow the steps.
- Alternatively you can buy the WAXE (ERC-20) tokens directly on Uniswap here.
Step 2: Add Liquidity To The WAXE-ETH Pair on Uniswap
You can do this directly on the Uniswap WAXE-ETH Pair page by clicking "+ Add Liquidity" or via the Wax Cloud Wallet (WCW) in the Defi section where it says "Deposit WAXE in Liquidity Pool".
If you're unfamiliar with adding liquidity to pairs on uniswap here are a few things you should know:
- By adding liquidity you'll earn a % (currently 0.3%) of all trades on this pair proportional to your share of the pool. Fees are added to the pool, accrue in real time and can be claimed by withdrawing your liquidity.
- Important: After adding liquidity there is a risk of losing value from impermanent loss when the token prices shift, there are good articles explaining how this happens like this one from Binance academy
- When you have added liquidity, you will receive WAXE-ETH pool tokens representing your position.
Step 3: Stake These Tokens in The WAX Cloud Wallet To Earn Rewards
Important: You still need to stake the WAXE-ETH tokens using the "stake" button provided in the Wax Cloud Wallet Defi section.
- You should now see your WAX-ETH liquidity pool tokens and your % share of the pool in the WAXE-ETH section of the Wax Cloud Wallet Defi page. If you don't, try waiting and refreshing the page and make sure the same MetaMask ETH account that you added the liquidity with is connected.
Step 4: That's It!
Once You Have Staked For A Full Epoch You're Earning WAX Defi Rewards.
- Also once staked as per the screenshot below you will see (if MetaMask is connected):
- Your overall distribution pool rewards in ETH, current and future % of epoch rewards.
- Your WAXG (ERC-20) token rewards balance. Note: WAXG is a governance token that can only be earned when you are staking for a full epoch in WAX defi and the price of WAXE has stayed the same or increased during that Epoch.
- The option to claim any rewards from previous ETH or WAXG rewards, you can leave these to accumulate to avoid paying gas fees each time though.
A Little More Information About WAXG
- Important: As mentioned you will only earn WAXG tokens in an epoch where the price of WAXE has stayed the same or increased.
If you've earned WAXG tokens you will see your balance and the % and actual ETH value of the piggy bank pool portion you are entitled to.
- You can choose to burn the WAXG to receive your share of the piggy bank pool rewards.
- You can also buy or sell WAXG on Uniswap here but liquidity is currently very low so bare that in mind.
In the future you can also use your WAXG balance to vote on WAX Defi governance proposals.